New Condo Payment Schedule 2026 (Singapore): Progressive Payment Scheme Explained

Purchasing an uncompleted new launch condominium in Singapore is financially very different from buying a resale property. Instead of paying the entire purchase price upfront or drawing down your full mortgage on day one, your payments are staggered according to the Progressive Payment Scheme (PPS).

Governed by the Urban Redevelopment Authority (URA) under the Housing Developers Rules, the PPS protects buyers by ensuring developers are only paid when specific construction milestones are completed. This staggered structure benefits your cashflow, as your monthly mortgage instalments start small and gradually increase as the building takes shape.

However, the first 8 weeks of the purchase involve rigid legal deadlines and significant upfront cash outlays. Missing a payment deadline can result in forfeited deposits or severe tax penalties.

This 2026 guide breaks down the exact timeline, the PPS milestones, and a practical cashflow example so you can confidently plan your new condo purchase.

1. TL;DR Summary: The Fast Facts

If you are short on time, here is a high-level summary of how paying for an uncompleted new launch condo works in Singapore:

Cash is Mandatory: You must pay an initial 5% Option Fee in physical cash. CPF cannot be used for this step.
The 25% Downpayment: If you are taking a bank loan, you need a minimum 25% downpayment. This comprises the 5% cash Option Fee and a subsequent 20% that can be paid using cash or your CPF Ordinary Account (OA).
Stamp Duties: Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD, if applicable) must be paid within 14 days of executing the Sale & Purchase (S&P) Agreement.
Progressive Drawdown: The remaining 75% of the purchase price is disbursed by your bank in stages (from 5% to 25% blocks) as the developer completes the foundation, walls, roofing, and finally obtains the Temporary Occupation Permit (TOP).

2. The Initial Payment Timeline: The First 8 Weeks

The most financially intense period of buying a new launch happens in the first two months. According to URA’s standard timeline for uncompleted properties, here is exactly what you must pay and when.

Stage 1: Securing the OTP (Day 1)

Action: You select your unit at the showflat and sign the Option to Purchase (OTP).
Payment Due: 5% Option Fee.
Funding Source: Cash only. (No CPF, no bank loans).
What happens next: The developer will mail the Sale & Purchase (S&P) Agreement to your appointed conveyancing lawyer within 14 days from the date the OTP was issued.

Stage 2: Exercising the S&P Agreement (Weeks 2 to 5)

Action: Upon receiving the S&P Agreement and title deeds from the developer, you have exactly 3 weeks (21 days) to exercise the option by signing the S&P.
Payment Due: Legal fees to your conveyancing lawyer usually begin here.
What happens if you back out: If you choose not to exercise the S&P before the 21-day expiry, the developer will retain 25% of your Option Fee (which equates to 1.25% of the property purchase price) and refund the remaining 75% to you.

Stage 3: Paying Stamp Duties (Within 14 Days of Signing S&P)

Action: Pay your statutory property taxes to the Inland Revenue Authority of Singapore (IRAS).
Payment Due: Buyer's Stamp Duty (BSD) and any applicable Additional Buyer's Stamp Duty (ABSD).
Funding Source: Cash or CPF OA.
Note on CPF usage: Because the timeline is 14 days, your lawyer can often apply to the CPF Board in time for a direct deduction. However, it is always recommended to have cash on standby in case CPF processing is delayed.

Stage 4: Completing the Downpayment (Within 8 Weeks of OTP)

Action: Pay the balance of your downpayment to officially complete the initial purchase phase.
Payment Due: 15% of the purchase price (Assuming a maximum 75% Loan-to-Value limit under MAS guidelines).
Funding Source: Cash or CPF OA.
What happens next: You have successfully secured the property. You will not need to make any further payments until the developer completes the first construction milestone (Foundation works).

3. Progressive Payment Scheme (PPS) Milestones Table

After the initial 20% downpayment is settled, your bank steps in. The remaining 80% (or 75% if you maxed out your LTV limit) is disbursed to the developer progressively.

Your monthly mortgage instalment increases only when a new stage is completed and billed to your bank. Here is the standard URA-mandated PPS schedule for an uncompleted condo:

Standard PPS Milestones (Compact View)

Option Fee (OTP): 5% (Cumulative 5%) — Day 1
Sign S&P Agreement: 15% (Cumulative 20%) — Within 8 weeks of OTP
Foundation Works Completed: 10% (Cumulative 30%) — ~6 to 9 months
Reinforced Concrete Framework: 10% (Cumulative 40%) — ~9 to 12 months
Partition Walls: 5% (Cumulative 45%) — ~12 to 15 months
Roofing / Ceiling: 5% (Cumulative 50%) — ~15 to 18 months
Door/Window Frames, Electrical, Plumbing: 5% (Cumulative 55%) — ~18 to 21 months
Car Parks, Roads, Drains: 5% (Cumulative 60%) — ~21 to 24 months
Notice of Vacant Possession (TOP): 25% (Cumulative 85%) — ~3 to 4 years (key collection)
Certificate of Statutory Completion (CSC): 15% (Cumulative 100%) — ~12 months after TOP

Note: The remaining 15% at CSC is often split. A portion is held by the Singapore Academy of Law as a stakeholder to ensure developers rectify any defects during the 1-year Defect Liability Period (DLP).

4. PPS vs. Deferred Payment Scheme (DPS)

You may occasionally see advertisements for a "Deferred Payment Scheme (DPS)." It is crucial to understand the difference.

Progressive Payment Scheme (PPS): This is the mandatory payment structure for all uncompleted new launch condos governed by URA. You pay progressively as the building is built.
Deferred Payment Scheme (DPS): This scheme allows buyers to pay an initial downpayment (usually 20%) and defer the remaining 80% of the payment until 2 or 3 years later, without needing a mortgage immediately. However, DPS is strictly only allowed for completed properties (projects that have already obtained TOP/CSC). Furthermore, developers usually charge a premium on the purchase price if you opt for DPS.

5. Example Cashflow: $1.5M New Condo

Let’s translate these percentages into a real-world scenario.

Assumptions:

Buyer Profile: Singapore Citizen purchasing their first property (0% ABSD).
Purchase Price: $1,500,000.
Bank Loan: Approved for the maximum 75% Loan-to-Value (LTV) limit.

Upfront Capital Required (First 8 Weeks)

Option Fee (5%): $75,000 (Must be physical cash)
Buyer's Stamp Duty (BSD): $44,600 (Can be cash or CPF)
- (Based on standard IRAS tiers)
Balance Downpayment (15%): $225,000 (Can be cash or CPF)
Estimated Legal Fees: $2,500 to $3,000 (Can be cash or CPF)

Total Initial Outlay Needed: $347,100 (of which at least $75,000 must be in cash).

Mortgage Drawdown (Post 8 Weeks)

After the initial 20% downpayment, your bank handles the payments.

When the Foundation is completed, the bank pays the developer 10% ($150,000). Your monthly mortgage instalment begins, but it is relatively low because you are only paying interest and principal on a $150,000 loan.
When the Concrete Framework is done, the bank pays another 10%. Your loan balance becomes $300,000, and your monthly instalment increases accordingly.
This gradual increase continues for 3 to 4 years until TOP is achieved, at which point your loan will be 85% fully disbursed.

6. Common Mistakes to Avoid

Not Securing an In-Principle Approval (IPA) Early: The Monetary Authority of Singapore (MAS) enforces strict Total Debt Servicing Ratio (TDSR) limits, capping monthly debt obligations at 55% of gross monthly income. If you pay the 5% cash Option Fee ($75,000) but fail to secure a 75% bank loan because your TDSR is too high, you will have to back out and forfeit 25% of your Option Fee ($18,750). Always get a bank IPA before visiting a showflat.
Underestimating the Cash Buffer: Buyers often assume their CPF can seamlessly cover all stamp duties. While lawyers can often process CPF deductions for uncompleted properties within the 14-day IRAS window, delays happen. If your CPF processing is delayed, you must pay the duty in cash first to avoid IRAS late penalties, then seek CPF reimbursement later.
Forgetting Maintenance Fees at TOP: When the condo achieves TOP and you collect your keys, the developer will require you to pay 6 months of MCST maintenance fees upfront in cash. Budget roughly $2,000 to $3,000 for this. (Verify specific amounts with the developer before TOP).

7. Frequently Asked Questions (FAQ)

Q: Can I use CPF for the initial 5% Option Fee? A: No. URA regulations and CPF Board rules mandate that the initial 5% Option Fee must be paid in physical cash (usually via a cheque or bank transfer to the developer's project account).

Q: When does my monthly mortgage repayment actually start? A: Your monthly repayment begins roughly 6 to 9 months after booking, precisely when the developer completes the "Foundation Works" phase and bills your bank for the first 10% drawdown.

Q: Can I sell my uncompleted condo before TOP? A: Selling an uncompleted unit is known as a "sub-sale." While technically possible, you are subject to the Seller's Stamp Duty (SSD) if you sell within the first 3 years of purchasing (calculated from the date you exercised the OTP). SSD rates are punitive (12% in year 1, 8% in year 2, 4% in year 3).

Q: What happens if the developer’s construction is delayed? A: Under the standard URA Sale & Purchase Agreement, developers are bound by a "Delivery of Vacant Possession" date. If they fail to deliver the project by this legal deadline, they are liable to pay you liquidated damages (a form of late penalty compensation) for every day of delay.

Q: Do I have to pay Property Tax during the construction phase? A: No. You are only liable for property tax and MCST maintenance fees after the Temporary Occupation Permit (TOP) is issued and you officially take possession of the unit.

8. Where to Go Next: Connect Your Property Plans

Navigating a new launch purchase requires locking down multiple financial variables. Ensure your planning is airtight by reading our connected cluster guides:

Are you a private property buyer? Read the Using CPF for Condo Purchases Playbook to master the 5% cash rules.
Not sure if a new launch is right for you? Weigh the risks and timelines in our New Launch vs Resale Condo (2026) Comparison.
Need to calculate your exact taxes? Use our Buyer's Stamp Duty (BSD) Calculation Guide to prevent cashflow shortfalls.
Upgrading and keeping an existing property? Check your tax exposure in our ABSD Explained Singapore Guide.

Sources

For the most current regulatory updates and individual financial limits, always consult official government channels.

URA — Buying uncompleted private properties: Official page
CPF Board — Using CPF for private properties: Official page
IRAS — When to stamp an instrument: Official page
IRAS — Stamp duty for residential property: Official page
IRAS — Additional Buyer’s Stamp Duty (ABSD): Official page
MAS — Loan-to-Value (LTV) explainer: Official page
MAS — Total Debt Servicing Ratio (TDSR) explainer: Official page